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Selling Arrangement
3 Months Ended
Mar. 31, 2012
Selling Arrangement [Abstract]  
Selling Arrangement

3.

Selling Arrangement. In February 2011, the Company and News America entered into a settlement agreement to resolve the Company's antitrust and false advertising lawsuit that had been outstanding for several years. Pursuant to the Settlement Agreement, News America paid the Company $125,000,000, and the Company paid News America $4,000,000 in exchange for a 10-year arrangement to sell signs with price into News America's network of retailers as News America's exclusive agent. The $4,000,000 is being amortized on a straight-line basis over the 10-year term of the arrangement. Amortization expense, which was $100,000 in the three months ended March 31, 2012 and is expected to be $400,000 per year over the next five years, is recorded within Cost of Services in the Company's Statements of Operations. The net carrying amount of the selling arrangement is recorded within Other Assets on the Company's Condensed Balance Sheets.

 

 

 

A reconciliation of the settlement proceeds to the gain from litigation settlement recognized in the Company's Statements of Operations is as follows:


 

 

 

 

 

 

 

 

Three Months Ended March 31

 

2012

 

2011

 

Settlement proceeds

 

$

 

$

125,000,000

 

Less contingent attorney's fees

 

 

 

 

(31,250,000

)

Less bonuses paid to employees

 

 

 

 

(3,988,000

)

Gain from litigation settlement, net

 

$

 

$

89,762,000